Boasting over 310 million active users worldwide, Amazon is a giant in online retail. Offering countless opportunities for entrepreneurs and businesses of all sizes, Amazon's extensive customer base has attracted over 9.7 million sellers, with more than 2 million actively selling today.
Whether you already have a Magento store to integrate with Amazon or you're looking to start selling on the platform from scratch, leveraging Amazon's wide reach and trusted reputation can help you achieve your most ambitious e-commerce business goals. Follow this complete guide on how to sell on Amazon for beginners – and learn everything you need to start and succeed as an Amazon seller.
Why Sell on Amazon?
Selling on Amazon provides numerous advantages for individuals and businesses looking to expand their reach. Unlike eBay, a popular marketplace that primarily caters to auction-style or individual listings, Amazon provides a streamlined marketplace experience, emphasizing fast shipping, brand growth, and comprehensive seller tools.
Here are some key reasons to start selling on Amazon:
- Global Customer Base – Amazon provides an extensive platform with millions of daily visitors, which ensures great exposure for sellers worldwide. You can greatly increase your store visibility and sales potential with this platform.
- Brand Trust – If you know how to sell on the Amazon marketplace, you’ll gain the advantage of Amazon's strong reputation for reliability and excellent customer service. Buyers often prefer Amazon because of its established trust.
- Simplified Selling Process – For those wondering how to sell products on Amazon as a beginner, the process is easy to follow. With options for Amazon individual and business accounts, sellers can choose plans that best fit their needs.
- Monetization and Growth Potential – Learning how to start selling items on Amazon can be highly profitable. The platform supports various business models, such as the sale of individual items and the start of a full-fledged Amazon business.
- Ease of Use for Beginners – If you're curious about how to become an Amazon seller or how to open an Amazon store, the platform provides resources and user-friendly interfaces to guide users.
Selling on Amazon involves more than just listing products, it leverages the platform's vast infrastructure and user base to boost sales and grow yourbusiness. Whether you aim to learn how to sell items or set up a store on Amazon, its tools can significantly enhance your business success.
How to Start an Amazon Store
The process of selling things on Amazon is straightforward to understand for newcomers. Here are the basic overview of the steps you need to consider before we look at each of them in detail:
1. Create a Business Plan
Draft a detailed business plan that clearly outlines the products you intend to offer, your sourcing strategy, and your financial projections. If you already have a business, assess how selling on Amazon can complement your other sales channels to create a cohesive strategy.
Your business plan should generally cover the following aspects:
- The products you intend to offer, along with any competitive advantages they may have over similar items already on Amazon.
- Your strategy for sourcing these products, whether by manufacturing them yourself, outsourcing production to another company, or purchasing existing products from a wholesale supplier.
- Financial projections that consider Amazon's fee structure.
2. Find a Profitable Niche
Conduct thorough market research to identify a niche that balances consumer demand with manageable competition. Use Amazon-specific tools like Product Opportunity Explorer to gather insights on popular categories and potential opportunities. Certain product categories consistently stand out among independent sellers on Amazon. The top five categories include: health and personal care, beauty and wellness, home, grocery, and apparel.
3. Choose Your Seller Type and Register
Decide between an Individual or Professional Seller account based on your expected sales volume. Individual accounts have no monthly fee but charge per item sold, while Professional accounts charge a flat monthly fee and provide more advanced tools. Jump to the comparison table to learn the difference.
4. Set Up Your Seller Profile
Choose a unique and memorable store name that represents your brand identity. Understand the details of listing products effectively, such as incorporating high-quality images and detailed descriptions. Create a competitive pricing strategy while considering shipping options to attract buyers.
5. Source Products and Suppliers
Determine the most suitable method for sourcing your products. You can choose to manufacture them yourself, obtain them from a wholesaler, or purchase existing items. This decision will significantly impact your pricing strategy, inventory management, and your capability to respond swiftly to market demand. Jump to our product sourcing best practices.
6. Create Product Listings
Use Amazon's Seller Central portal to develop comprehensive product listings. Ensure they adhere to Amazon’s standards for product identifiers, pricing, descriptions, and images. Meeting these standards is key to attracting buyers and aligning with the platform's requirements.
7. Manage Inventory and Fulfillment
Decide whether to use Amazon’s Fulfillment by Amazon (FBA) services or handle storage and shipping yourself. Balance your inventory to avoid shortages or excesses, and consider using Amazon’s tools for inventory management.
8. Advertise and Optimize Listings
Consider advertising on Amazon to increase visibility. Optimize your product listings with effective keywords, concise bulletpoints, and the brandname at the start of titles. Use Amazon tools like Manage Your Experiments for A/B testing.
If you’re running your store on Magento 2, integrating it with Amazon can simplify how you manage your business. A service like the Amazon Integration for Magento 2 helps connect your store with Amazon, enabling seamless product syncing, order management, and inventory updates. Automate your essential processes to save time and effort while also ensuring wider reach and better sales.
Real Success Stories of Selling on Amazon
Various brands achieved significant growth through effective mastery of selling on Amazon. If you're eager to master product sales on Amazon or launch an Amazon store, these stories will provide valuable inspiration.
Anker
Anker, a leader in electronic accessories, stands as a prime example of success on Amazon. Anker expanded its market reach and broadened its product offerings through a strategic focus.
Here are some key achievements from their journey:
- Reached more than $1 billion in sales, which marks a significant financial milestone.
- Diversified its range of products to enhance the portfolio and meet varied consumer needs.
- Successfully entered international markets by utilizing Amazon's vast distribution network.
- Maximized Amazon's marketplace for brand growth and visibility.
Ring
Ring, the smart doorbell company, effectively utilized Amazon's platform to reach a broad customer base and enhance its brand presence.
Ring's key achievements include:
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By offering innovative home security solutions, Ring quickly became a top-selling brand in the smart home category on Amazon.
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The company garnered numerous positive reviews, building trust and encouraging new customers to choose their products.
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Ring's success on Amazon contributed to its acquisition by Amazon in 2018, further integrating its products into the Amazon ecosystem.
Instant Pot
Instant Pot, the popular multi-cooker brand, is a notable example of a product that experienced remarkable success through Amazon. The brand leveraged the platform to reach a vast audience and rapidly increase its popularity and sales.
Here's what they achieved:
- Instant Pot became a best-seller on Amazon, with significant sales during events like Black Friday and Prime Day contributing to its rising popularity.
- Garnered thousands of positive customer reviews, enhancing its reputation and encouraging new customers to purchase the product based on its performance and reliability.
- Utilized Amazon's marketing and promotional tools to boost visibility and engage consumers, thus driving further sales.
- Capitalized on its Amazon success to introduce a wider range of products, including various models and accessories, catering to different consumer needs and preferences.
Amazon Seller Account Types
Before you start to sell, you should choose between two main types of seller accounts: Individual and Professional. Consider what you want to achieve with your store and how much you plan to sell when making your choice.
This table highlights the key feature differences between the two types of accounts:
| Features | Individual Seller | Professional Seller |
|---|---|---|
| Fees | $0.99 per item sold | $39.99 per month, regardless of sales |
| Listing Limits | Up to 40 items per month | Unlimited listings |
| Access to Advertising | No | Yes |
| Custom Shipping Rates | No | Yes |
| Additional Features | Basic reports | Advanced reports, bulk listing tools |
For new sellers, starting as an Individual might be convenient, but if you plan to scale up rapidly, a Professional account could be more cost-effective in the long run.
Choosing the Right Amazon Selling Strategy
An appropriate selling strategy can greatly influence your profitability, market reach, and long-term sustainability. To help you make an informed decision, here’s a detailed comparison of various selling models:
Model | Description | Best For |
|---|---|---|
| Private Label | Creating your own brand and manufacturing products with unique branding | Building a brand and brand loyalty |
| Wholesale | Purchasing bulk products from manufacturers and selling them individually | Efficient scaling with lower margins |
| Retail Arbitrage | Buying discounted products from retail stores and reselling them on Amazon | Quick turnaround with opportunistic sales |
| Dropshipping | Partnering with suppliers to ship products directly to customers | Low initial investment |
| Handmade | Selling handcrafted items | Artisans and small crafts stores |
Assess the risks, initial costs, and your long-term objectives to decide which strategy aligns with your goals. It's also important to weigh the benefits and drawbacks of each approach:
- Private Label – Pros: Brand ownership, higher profit margins, brand loyalty; Cons: High initial investment, time-consuming, competitive market.
- Wholesale – Pros: Scalability, brand recognition, operational simplicity; Cons: Lower margins, supplier dependency, high competition.
- Retail Arbitrage – Pros: Low entry barrier, fast turnover, flexibility; Cons: Time-intensive, inconsistent inventory, brand restrictions.
- Dropshipping – Pros: Minimal upfront cost, reduced financial risk, broad product range; Cons: Low margins, supplier dependency, limited quality control.
- Handmade – Pros: Creative control, niche appeal, craftsmanship value; Cons: Time-consuming, scaling challenges, limited audience (consider selling on Etsy instead).
Identifying Profitable Products for Amazon
You need to choose the right products to sell on Amazon since this decision plays a critical role in your success. A strategic approach ensures that your offerings align with market demands and satisfy consumer preferences.
1. Conduct Market Research
First, examine market trends to identify products that match consumer interests and demands. You should understand these trends to select products that resonate with your target audience and ensure your offerings remain relevant.
2. Utilize Research Tools
Use tools such as Jungle Scout and Helium 10 to analyze product demand and competition. These tools provide valuable insights into sales estimates and market dynamics, which will enable you to choose products with high demand and manageable competition for optimal success.
3. Select the Right Products
Focus on products that solve specific problems and meet unique needs. Target items with high demand and low competition, priced to enable competitive tactics while covering costs. This approach ensures profitability and a strong market position.
4. Validate Product Choices
Cross-reference your product ideas with multiple data sources, such as customer reviews and market analysis, to confirm sustained demand. This validation reduces risk and ensures well-informed product decisions that support business growth.
Sourcing and Inventory Management on Amazon
To learn how to sell on Amazon successfully, focus on mastering sourcing and inventory management to maximize profits and ensure customer satisfaction. Here are essential methods and strategies for beginners to consider:
Sourcing Products
When sourcing products on Amazon, you have two main options:
- Domestic Suppliers – Domestic suppliers offer faster shipping times, easier communication, and potentially better quality control but typically come with higher production costs. Sellers can find reputable domestic manufacturers through B2B marketplaces like ThomasNet or Maker’s Row.
- International Suppliers – International suppliers generally provide lower production costs and a wider variety of products but may involve longer shipping times, cultural and language barriers, and potential quality issues. Platforms like Alibaba and Global Sources are popular choices.
Use third-party inspection services to verify the quality of your products before shipment. Make sure your suppliers possess the necessary certifications relevant to your product, like ISO or FDA. Also, don’t forget to regularly evaluate customer feedback and returns to pinpoint potential quality issues, and communicate these directly to your supplier for necessary improvements.
Inventory Management
Starting an Amazon business requires a solid approach to inventory management. Here are 3 best practices to follow:
1. Forecast Demand
To successfully forecast demand, analyze past sales and industry trends to predict future needs. Use Amazon's tools to identify peak buying times and adjust your stock levels. This approach ensures you have enough products to meet customer demand efficiently.
2. Use reorder Points and JIT Inventory
Calculate when to reorder products to avoid running out of stock. Consider lead times, daily sales rates, and safety stock in your calculations using the formula: Reorder Point = (Average Daily Usage x Lead Time) + Safety Stock. Implement just-in-time (JIT) inventory to reduce storage costs, and work with dependable suppliers for consistent delivery times.
3. Implement ABC and Stock Management
Organize your inventory using ABC analysis. Focus on high-value, low-quantity items (Category A) to optimize management and cash flow. Maintain a buffer stock to manage sudden demand spikes, and conduct regular inventory audits to ensure accuracy. Streamline your stock tracking and order processing by using Amazon’s Inventory Performance Index and automated systems.
Read More: What is a Stockout?
Creating Effective Amazon Product Listings
To create effective Amazon product listings, start with informative and persuasive titles and descriptions. Follow these best practices:
Product Titles
- Use clear and concise language to describe your product effectively.
- Include keywords that customers might use when they search for products on Amazon.
- Highlight unique selling points that can help your items stand out in the Amazon marketplace.
Product Descriptions
- Provide detailed information to address common buyer questions.
- Use bullet points to make your description easy to read.
- Focus on the benefits to the customer rather than just listing features, which is important for anyone who learns how to sell stuff on Amazon effectively.
- Utilize AI tools, like those highlighted in Amasty’s guide, to refine and perfect your descriptions
Read More: How to Use ChatGPT to Write Product Descriptions
Product Photography
- A high-quality camera or professional photography can significantly increase your product's appeal, a must if you're aiming to sell products on Amazon successfully.
- Provide multiple images to give potential buyers a comprehensive view of what you’re offering.
- Include pictures showing your product in everyday use, which can be especially helpful if you're figuring out how to sell items on Amazon for the first time.
- Offer close-up shots to show special features, helping you emphasize what makes your product unique.
Understanding Fulfillment by Amazon: How FBA Works
Fulfillment by Amazon is a robust service that allows sellers to use Amazon's warehousing, packaging, and shipping facilities. Here’s how the FBA process works:
- Storage: Once you decide to use FBA, you send your products to Amazon’s fulfillment centers. Amazon handles the storage of your inventory, ensuring your products are ready to be shipped to customers.
- Packaging and Shipping: When a customer orders your product, Amazon picks, packs, and ships it directly to them. This efficient process allows you to focus on other aspects of your business while ensuring timely delivery.
- Customer Service: Amazon provides customer service and handles returns for the products you sell through FBA, enhancing the buying experience and building trust with your customers.
Now, let's weigh the pros and cons of using FBA for fulfillment:
Advantages:
- Simplifies logistics and frees up time
- Products eligible for Amazon Prime
- Amazon handles customer service, boosting credibility
Disadvantages:
- Associated fees can affect earnings
- Less control over storage and shipping
- Requires careful monitoring of inventory levels
Leveraging Amazon Advertising
Amazon offers several advertising options that can help boost your product visibility and drive sales. Two of the most popular options are Sponsored Products and Sponsored Brands, each tailored to different marketing objectives.
Sponsored Products
Sponsored Products are ads that appear next to search results or on product detail pages. They promote individual products, which makes them great for increasing visibility and sales for specific items. To run a successful Sponsored Products campaign, choose keywords that match what customers search for and adjust your bids based on the ads' performance.
Sponsored Brands
Sponsored Brands let you display a custom headline and up to three products in a banner at the top of search results. This format is great for increasing brand awareness and building a strong identity on Amazon. When you use Sponsored Brands, showcase products that fit your brand's main message and use catchy visuals and text to grab attention.
For successful Amazon ads, keep these tips in mind:
- Set clear goals before you start your campaigns to help your planning and measure how well they do.
- Regularly check ad performance numbers, like click-through rates (CTR) and return on ad spend (ROAS), to find ways to make them better.
- Experiment with different ad types and creative ideas to capture more interest.
- Use your budget wisely and concentrate on campaigns and products that perform well.
Monitoring Performance and Scaling Your Business
To effectively track the health of your store, focus on key performance indicators (KPIs) that offer valuable insights into your operations. Here’s a guide on which KPIs to track and how they can help you scale your store:
Sales Metrics
Keep an eye on total sales, sales growth, and the sales rank of your products. These metrics show how well your products perform in the market and help identify trends or seasonal patterns that impact sales.
The conversion rate indicates the percentage of page visitors who make a purchase. A higher conversion rate implies that your product listings effectively convince potential customers to buy. Optimize listings with compelling descriptions and attractive visuals to improve this rate.
Read More: What is a Good Conversion Rate for E-commerce
Customer Reviews and Ratings
Positive reviews and high ratings build trust and influence future buyers. Regularly check reviews to understand customer satisfaction levels and address any negative feedback promptly to maintain a good reputation.
Traffic and Impressions
Monitor the number of visitors to your product pages and the frequency with which your listings appear in search results. Increasing traffic and impressions can lead to higher sales potential. Strategies like SEO and advertising can boost these numbers.
If you already have a store on Shopify or Magento, make sure to leverage omnichannel solutions like the Product Feed for Magento 2 or FeedFusion for Shopify to implement inventory integration.
Start Selling on Amazon in 2025
To thrive as a successful Amazon seller, you need to carefully select your products, optimize your listings for search, and manage your inventory and customer service efficiently. While this might seem straightforward, it requires significant effort and time to optimize and maintain these aspects of your business.
We hope this guide helps you understand how to become an Amazon seller and turn your business dreams into success. And if you decide to expand your reach further and create your own e-commerce store, feel free to contact Amasty!
